Boeing stock plunges as investigation into Ethiopian crash continues

Following the crash of Ethiopian Airlines B-737-800MAX which led to the death of 149 people on board, an Ethiopian delegation led by Accident Investigation Bureau (AIB) has flown the Flight Data Recorder (FDR) and Cockpit Voice Recorder (CVR) to Paris, France for investigation.

The crash was the second involving the 737 MAX, the world’s most-sold modern passenger aircraft, in less than five months, forcing Ethiopian Airlines and others to ground 737 MAX planes in service. Some countries, including Nigeria, also banned the planes from their airspace.

According to the U.S. Federal Aviation Administration (FAA), new information from the Ethiopian crash and newly refined data about the plane’s flight path indicated some similarities between the two B-737-800MAX disasters “that warrant further investigation of the possibility of a shared cause”. Hence, the United States joined other countries in grounding the plane.

While Boeing supports the decision by FAA to temporarily ground its planes, the company said it continues to have full confidence in the safety of the 737 MAX.

“We are supporting this proactive step out of an abundance of caution,” said
Dennis Muilenburg, president, CEO, Chairman of The Boeing Company, one of the company’s top four shareholders with 130,004 shares, according to his filing with the Security and Exchange Commission (SEC) on July 2, 2018.

“Safety is a core value at Boeing for as long as we have been building airplanes; and it always will be. There is no greater priority for our company and our industry. We are doing everything we can to understand the cause of the accidents in partnership with the investigators, deploy safety enhancements and help ensure this does not happen again,” Muilenburg said.

Boeing’s stock has plunged more than 12 percent from last Friday’s price of $422.42, following the crash and subsequent decision of owners of 737 MAX planes to ground them, and several countries banning them from their airspace.